Microsoft and TomTom settle patent dispute over GPS systems

Microsoft Corp., the world's largest software maker, settled a patent fight with TomTom NV over global positioning systems (GPS) used in automobiles.

The Dutch company will pay royalties for eight of Microsoft's patents, and Microsoft will get a license to four TomTom patents under the terms of the five-year agreement, the companies said. TomTom will also remove certain features related to two Microsoft patents under the agreement. The technology is used for enabling, organizing, storing, and assessing the data from file-management systems.

Last month, Microsoft sued TomTom for patent infringement relating to innovations in car navigation technology and other computing functionality. TomTom filed a countersuit earlier this month, accusing Microsoft of infringing on its patents with its Streets and Trips program.

The arrangement covers past and future US sales of relevant products, according to Microsoft. Financial terms of the deal were not disclosed.

"We are pleased TomTom has chosen to resolve the litigation amicably by entering into a patent agreement," Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft, said in a statement. "We were able to work with TomTom to develop a patent agreement that addresses their needs and ours in a pragmatic way."

"When addressing IP infringement issues, there are two possible paths: securing patent coverage or not using the technology at issue," Gutierrez continued. "Through this agreement, TomTom is choosing a combination of both paths to meet the unique needs of its business, and we are glad to help them do so."

"This agreement puts an end to the litigation between our two companies," said Peter Spours, director of IP Strategy and Transactions at TomTom. "It is drafted in a way that ensures TomTom's full compliance with its obligations under the GPLv2, and thus reaffirms our commitment to the open source community."